NDT Final Exam
Study online at https://quizlet.com/_i216a4
1. Financial Responsibilty law: requires automobile owners to carry some type of insurance
2. Liability insurance: coverage for property damage you cause to another's property through negligent
operation of your vehicle or for bodily injury you cause to another person.
3. minimum amount of liability insurance: $25,000 for injury or death of one person
$50,000 for injury or death of two or more people
$20,000 per accident for property damage
4. Uninsured Motorist Vehicle (UMV) Fee:: a fee paid to the DMV that allows you to drive uninsured
at your own risk
5. If you cause a collision, you may be responsible for the losses of the other
people involved such as: Medical and funeral costs, lost wages, and compensation for pain and suffering
Car repair or replacement costs and auto rental
Punitive damages awarded by a court
Attorney fees, if owner is sued
6. Appraisal: estimated value of the cost of repairs, or determination of complete loss, for a vehicle
7. Basic Limits: the lowest coverage amounts given by the law or insurance companies
8. Claim: demand for payment under insurance
9. Collision insurance: pays the cost of fixing or replacing owner's car after an accident-regardless of who was
driving or who was to blame.
10. comprehensive coverage: Pays to replace or fix owner's car if it is stolen or if it is damaged by causes
other than a collision, such as fire, vandalism, or hail.
11. Compulsory Auto Insurance Laws:: law that makes it illegal to operate vehicle without having proof
of ability to pay in what results from an accident
12. Declarations: The part of the policy that provides detailed information about the insured, insurer, and the
coverage.
13. Deductible: amount of a claim that you have agreed to pay
14. Depreciation: loss of value in your vehicle over time
15. Effective Date and Expiration Date: days your coverage starts and ends
16. endorsement: an amendment to your policy
17. Exclusions: certain death, people, locations, etc. that your insurance doesn't cover
18. loss: A value reduction to your automobile caused by an insured peril, the amount sought in a claim, the amount
paid by your insurer in a claim.
1/3
Study online at https://quizlet.com/_i216a4
1. Financial Responsibilty law: requires automobile owners to carry some type of insurance
2. Liability insurance: coverage for property damage you cause to another's property through negligent
operation of your vehicle or for bodily injury you cause to another person.
3. minimum amount of liability insurance: $25,000 for injury or death of one person
$50,000 for injury or death of two or more people
$20,000 per accident for property damage
4. Uninsured Motorist Vehicle (UMV) Fee:: a fee paid to the DMV that allows you to drive uninsured
at your own risk
5. If you cause a collision, you may be responsible for the losses of the other
people involved such as: Medical and funeral costs, lost wages, and compensation for pain and suffering
Car repair or replacement costs and auto rental
Punitive damages awarded by a court
Attorney fees, if owner is sued
6. Appraisal: estimated value of the cost of repairs, or determination of complete loss, for a vehicle
7. Basic Limits: the lowest coverage amounts given by the law or insurance companies
8. Claim: demand for payment under insurance
9. Collision insurance: pays the cost of fixing or replacing owner's car after an accident-regardless of who was
driving or who was to blame.
10. comprehensive coverage: Pays to replace or fix owner's car if it is stolen or if it is damaged by causes
other than a collision, such as fire, vandalism, or hail.
11. Compulsory Auto Insurance Laws:: law that makes it illegal to operate vehicle without having proof
of ability to pay in what results from an accident
12. Declarations: The part of the policy that provides detailed information about the insured, insurer, and the
coverage.
13. Deductible: amount of a claim that you have agreed to pay
14. Depreciation: loss of value in your vehicle over time
15. Effective Date and Expiration Date: days your coverage starts and ends
16. endorsement: an amendment to your policy
17. Exclusions: certain death, people, locations, etc. that your insurance doesn't cover
18. loss: A value reduction to your automobile caused by an insured peril, the amount sought in a claim, the amount
paid by your insurer in a claim.
1/3
